{"id":126914,"date":"2020-09-18T12:29:08","date_gmt":"2020-09-18T11:29:08","guid":{"rendered":"https:\/\/newmail-ng.com\/?p=126914"},"modified":"2020-09-18T12:29:08","modified_gmt":"2020-09-18T11:29:08","slug":"transcorp-hotels-hard-hit-by-covid-19-to-restructure-business-diversify-into-asset-light-business-model-reduce-workforce","status":"publish","type":"post","link":"https:\/\/newmail-ng.com\/transcorp-hotels-hard-hit-by-covid-19-to-restructure-business-diversify-into-asset-light-business-model-reduce-workforce\/","title":{"rendered":"Transcorp Hotels hard hit by COVID-19, to restructure business, diversify into asset-light business model, reduce workforce"},"content":{"rendered":"<p>The novel COVID-19 pandemic has caused the African Hotel and Tourism industry to lose over $50bn in revenue. Amidst this, Transcorp Hotels Plc has suffered unprecedented losses and is looking to restructure the business strategy of its hotels and optimize its operations. <\/p>\n<p>The management of Transcorp Hotels Plc has announced that it will be taking steps to ensure business continuity in the wake of the losses recorded due to the COVID-19 pandemic. To this end, the hotelier is diversifying its portfolio and reducing its workforce as part of its cost management initiatives.  <\/p>\n<p>The Managing Director, Transcorp Hotels Plc, Dupe Olusola, disclosed this during a Press Conference on Thursday saying \u201cThe impact of COVID-19 on the business is like nothing the company has ever witnessed. The hotel and hospitality industry in Nigeria has never faced a crisis that brought travel to a standstill, including the Ebola Virus Outbreak of 2014 and the recession of 2015. The slow pick up of international travel, restriction on large gatherings, the switch to virtual meetings and fear of the virus, has drastically reduced demand for our hotels and occupancy levels to its lowest of less than 5%.\u201d<\/p>\n<figure id=\"attachment_126917\" aria-describedby=\"caption-attachment-126917\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/newmail-ng.com\/wp-content\/uploads\/2020\/09\/Dupe-Olusola-300x236.jpg\" alt=\"Dupe Olusola, Transcorp Hotel CEO\" width=\"300\" height=\"236\" class=\"size-medium wp-image-126917\" \/><figcaption id=\"caption-attachment-126917\" class=\"wp-caption-text\">Dupe Olusola, Transcorp Hotel CEO<\/figcaption><\/figure>\n<p>According to her \u201cDespite the losses incurred we have fulfilled our obligations to staff. At the inception of the pandemic, we maintained a 100% salary payment to our over 900 employees in March and April. We also activated various cost-saving initiatives such as renegotiations of service contracts and restructuring of our loans. We suspended further commitment to buy fixed assets and operating equipment as well as reducing our energy consumption and maintenance costs. Despite undertaking these, it has become apparent that more fundamental changes need to be made for the business to survive. To this end, our workforce headcount will be reduced by at least 40%, and our reward system will be optimized.\u201d<\/p>\n<p>Mrs Olusola further disclosed that negotiations are ongoing to ensure that our colleagues who will be impacted are adequately compensated given the peculiarities of the economy at this time. A health insurance package to reduce their health burden costs, especially during the pandemic, amongst other payment settlements, will be activated. Equally, all Executives of Transcorp Hilton Abuja have now taken a pay cut. <\/p>\n<p>As one of the leading hospitality brands in Africa, Transcorp Hotels Plc has stated its commitment to uphold service standards and ensure that all guests continue to experience the warmth and hospitality that it is known for.  <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The novel COVID-19 pandemic has caused the African Hotel and Tourism industry to lose over $50bn in revenue. Amidst this, Transcorp Hotels Plc has suffered unprecedented losses and is looking to restructure the business strategy of its hotels and optimize its operations. The management of Transcorp Hotels Plc has announced that it will be taking [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":88149,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[110,3,15,2],"tags":[53148,55402,28989],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Transcorp Hotels hard hit by COVID-19, to restructure business, diversify into asset-light business model, reduce workforce | New Mail Nigeria<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/newmail-ng.com\/transcorp-hotels-hard-hit-by-covid-19-to-restructure-business-diversify-into-asset-light-business-model-reduce-workforce\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Transcorp Hotels hard hit by COVID-19, to restructure business, diversify into asset-light business model, reduce workforce | New Mail Nigeria\" \/>\n<meta property=\"og:description\" content=\"The novel COVID-19 pandemic has caused the African Hotel and Tourism industry to lose over $50bn in revenue. Amidst this, Transcorp Hotels Plc has suffered unprecedented losses and is looking to restructure the business strategy of its hotels and optimize its operations. 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